Vitalik Buterin, co-founder of Ethereum, revealed that the Ethereum Foundation is contemplating staking its ETH holdings, which are valued at nearly $1 billion.

However, Buterin noted that previous concerns regarding staking, particularly regulatory risks and the potential implications of hard forks leading to slashing of staked assets, have been significant obstacles.

He further mentioned that these regulatory risks have diminished, and the foundation is actively exploring ways to address concerns about hard forks, signaling a potential shift towards staking.

In light of these developments, Joseph Lubin, another co-founder, has proposed replacing the current executive director, Aya Miyaguchi, with co-leaders Danny Ryan and Jerome de Tychey to bring fresh energy to the foundation.

Ryan acknowledged Miyaguchi's leadership but emphasized the necessity for future improvements within the foundation.

This leadership change proposal comes amid criticism directed at the foundation for its limited participation in the Ethereum ecosystem, prompting calls for greater engagement.

Josh Stark from the foundation highlighted their recent activities, including token sales and grant distributions, although these efforts have not been well-received by the community.

As of late 2023, the Ethereum Foundation's holdings included 269,000 ETH, valued at approximately $891 million, which could potentially generate about $26.2 million annually if staked with Lido Finance.

Despite this potential income, the foundation's expenses reached $134.7 million in 2023, indicating a significant shortfall.

Angel investor Eric Conner has suggested that the foundation could utilize staking to generate rewards that could support employee payments and grants.

Nonetheless, Tim Beiko from the foundation expressed caution, stating that while staking could be beneficial, it would be imprudent to rely solely on staking rewards for operational costs.

Buterin has previously outlined the need for leadership changes at the foundation, emphasizing the importance of improved technical knowledge and better communication with the community.